Highlights

1Q11

• During the quarter, we increased our interest in Shopping Center Crystal Plaza, Shopping Piracicaba and Shopping Curitiba, totaling R$108.7 million in investments, with an average real and unleveraged IRR of 13.1%.We also sold our 814.9 m² GLA interest in Esplanada Shopping for R$11.8 million, with a real IRR of 16.7%.
• We increased our owned and total GLA by 6.9% and 1.8%, respectively, over 4Q10, adding 11,200 m² of owned GLA through acquisitions, 14,300 m²  through greenfield projects and 15,100 m² through expansions.
• We fully prepaid the acquisition of Shopping Tijuca, amounting to R$520.5 million, which was originally scheduled to be paid in 10 quarterly installments after the 21st month, at a cost of the CDI+2% p.a., with a CRI for the same amount, with monthly installments over 14 years and two-year grace period at the TR+10.7% p.a.
• We raised US$230 million through the issue of perpetual bonds at 8.50% p.a.The coupon payments were swapped to 99.15% of the CDI until the January 2016 call date. In 1Q11 as a whole, we raised a total of R$670.7 million in TR-pegged debt for Shopping Tijuca, Shopping Tamboré and Mooca Plaza Shopping.

2Q11

• We concluded a primary public offering of 42.5 million shares (including the over-allotment option) totaling R$731 million at R$17.20 per share.The proceeds were used to acquiring interests in shopping malls.
• We acquired Shopping Paralela in Salvador, Bahia, on April 29, adding 37,800 m² to owned GLA, with a first-year estimated NOI of R$22.2 million.
• Wealso opened Via Brasil Shopping and the expansion of Shopping Tamboré, adding 30,100 m² to owned GLA and stabilized NOI of R$34.3 million.

3Q11

• BRMALLS was included in the Bovespa Index (Ibovespa) portfolio with a weighting of 0.799%, making it the 38th largest participant. It was also included in the Brazil Index 50 (IBrX-50) and the Carbon Efficient Index (ICO2).
• We acquired the Catuaí Portfolio, which includes the Catuaí Shopping Londrina and Catuaí Shopping Maringá malls, located in Paraná state, adding 63,700 m² to our owned GLA and an estimated NOI of R$45.2 million in the first year.The portfolio also included two greenfield projects in the same state – LondrinaNorte Shopping and Catuaí Shopping Cascavel.
• We announced two other greenfield projects during the quarter:Shopping Vila Velha, with estimated total GLA of 62,900 m2 in the first phase of expansion to 108,000 m²; and the Contagem project, with total GLA of 35,000 m² (first phase), with a possible expansion of up to 10,000 m².
• We leased 224 contracts or total GLA of 27,800 m2in development projects, 119.6% and 167.9% up, respectively, on 3Q10. We also signed 164 contracts for greenfield projects, accounting for 20,100 m² of GLA, up by 88.5% and 145.6%, respectively, and for 60 stores in expansion contracts, corresponding to 7,600 m² of GLA, respective growth of 300.0% and 251.9%.

4Q11

• Annual net revenue grew by 57.7% to R$861.5 million.
• Annual NOI totaled R$772.6 million, 59.0% more than in 2011.
• Adjusted FFO came to R$331.0 million in FY11, a 16.1% improvement over the R$285.0 million recorded in the previous year.
• Same-store rent grew by 15.2% in 4Q11, the third consecutive quarterly record, and recorded annual growth of 13.6%.Same-store sales moved up by 8.8% in the fourth quarter and 8.9% in the year as a whole.
• On November 22, we acquired 100% of Shopping Jardim Sul, increasing our owned and total GLA by 30,800 m², with an estimated own stabilized NOI of R$50.1 million.BRMALLS plans to sell 40% of the mall through the distribution of shares in an investment fund.
• On November 23, the expansion of Shopping Campo Grande was inaugurated, increasing total GLA by 5,400 m² and owned GLA by 3,700 m², equivalent to a 15.9% increase in the mall’s total GLA, with an expected stabilized NOI of R$5.3 million, accompanied by a real unleveraged IRR of 16.5%.
• On November 29, the Company inaugurated Mooca Plaza Shopping, with 100% of GLA already leased and 85% of its stores open for business. The property was the largest mall inaugurated in Brazil in 2011, consolidating BRMALLS as the leading mall operator in the state of São Paulo. NOI is R$35.6 million, with an IRR of 16.1%. This mall will generate an own stabilized NOI of R$35.6 million, with an IRR of 16.1%.
• In 2011 as a whole, we invested R$1.4 billion in six acquisitions and R$437.1 million in expansions and greenfield projects and raised R$1.1 billion through two issues (Perpetual Bonds and Follow-on)
• Our shares substantially outperformed the Ibovespa and our peers* (BRMALLS +7.0%, Ibovespa -18.1% and peers +0.7%).

 

*2011 performance of Multiplan, Iguatemi, Aliansce and General Shopping.